Dollar Weakens as Inflation Data Tames Rate Hike Bets

The US dollar weakened on Wednesday after the release of July's consumer price inflation (CPI) data, which matched economists' expectations.

This tempered concerns about a near-term interest rate hike by the Federal Reserve.

In the 12 months through July, the CPI advanced 3.4 per cent after rising 3.5 per cent in June.

Core CPI increased 2.5 per cent in the 12 months through July after climbing 2.6 per cent in June.

Fed funds futures traders are now pricing in 40 per cent odds of a September rate hike, down from 44 per cent before Wednesday's data and from 55 per cent a week ago.